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Five common questions asked by consumers
regarding credit scores
Keeping track of the credit score is
very important for every consumer who
has used credit in his past or is using
credit in the present. You should do
this at least once in a month so that
your identity is not stolen and your
credit score has decreased rapidly with
out you noticing it and not being
responsible for it. Your credit score is
extremely important because every bank
and financial institution makes their
decision about give you any kinds of
loans based on your credit score. Also,
after they decide to give you the loan
that you have applied for, the interest
rate charged by them will depend on your
credit score.
One problem that is faced by most of the
consumers is that they are not able to
find answers to their important
questions regarding credit scores. The
questions may be regarding improving
their credit score or even fixing it
from errors.
There are several websites answering
these questions but the problem is; the
answers are not specific which only
confuses the consumer even more. This
article has answers to 5 very common
questions asked by consumers.
1)
Can I recover from the damage if
I declare bankruptcy?
This is one of the trickiest question
and the answer mainly depends on your
situation and more so whether you have
learnt your lesson. If you are wondering
if declaring bankruptcy makes sense or
not then it depends entirely on your
situation. If you are not even able to
make the minimum payments on your credit
card and have several bills overdue,
then your credit score is mostly screwed
up so bad that filing for bankruptcy may
save you from further humiliation.
However, this should be your last
option.
2)
Will declaring bankrupt have any
advantage for my credit report?
Yes and no, but the worst thing that can
happen to your credit report is
bankruptcy. However, if there is no
other option then declaring bankruptcy
will save your credit report from
becoming worst.
3)
How can I fix my Credit Score?
Your credit score can be fixed even
after you have filed for bankruptcy.
However, it cannot be done in a day or
two. It may take over a year, may be two
years. Start paying your bills
religiously and the best way to increase
your credit score is to apply for the
“Bankrupt Credit Card” and make sure
that you use it every month and pay the
entire amount on it before the credit
free period is over.
4)
How to rebuild my credit without
getting a loan?
The easiest and the most efficient way
to begin, is with the secure credit
card. This card has a limit which is
equivalent to the security deposit.
These cards don’t come with good deals;
however once you rebuild your credit you
can get the normal card.
5)
Will my credit score be terrible
for 7 years?
No, it will not. If you begin to pay
your bills on or before time then your
credit score will be good in less than a
year. |
